Mortgage Company Commitment letter

[Teg123]

Maryland:
Can anyone tell me how legally binding a commitment letter is from a Mortgage company
provided all conditions in the letter have been met?

[FlyingRon]

Depends what the letter says. An approval letter is generally so vague as to be useless.

The more detailed the commitment letter is the better your chances are.

Not enough information here.

[seniorjudge]

Originally Posted by FlyingRon

Depends what the letter says. An approval letter is generally so vague as to be useless.

The more detailed the commitment letter is the better your chances are.

Not enough information here.

I agree.

There are qualification letters (which are worthless) and then there are actually commitment letters (where you must fulfill a ton of requirements).

[Teg123]

MD, The letter is not a pre-approval letter. We passed that stage a while back. It basically
states we are pleased to issue this loan commitment. Your credit has been approved under
this program at this interest rate for a sales prices. The approval is valid until with date.
Also it list conditions of approval which we have met.

[FlyingRon]

At that level of detail, it would seem to be binding as long as the commitments are met and you close before the date specified.

Are you getting some indication that they will not honor the commitment?

[Teg123]

We received loan commitment in writing, from Loan company which also mentions county loan program approval and then two days later we learn that the PMI company has declined loan? Which seems to me to be the Mortgage companies problem! Someone should deliver
the $$ mentioned in letter that they promised to loan!